Updates
August 2, 2018: in response to the graphic below, a reader sent me a note, asking: "There's so much more gas ready to be "tapped" there's no need to store as much ... just crack a few valves open a little more ... Am I missing something?
My reply:
I don't know. I know very, very little about natural gas. It's only through the blog that I even began following natural gas. But if you are correct, it means the weekly graph that the EIA publishes and that traders follow has been completely irrelevant all these years -- in other words, why even track the fill rate?Or, with the Utica, Marcellus, et al, things have changed, your (implied?) thesis is completely correct, and going forward, they either need to quit following the weekly fill rate or explain to us why it's worth tracking.I seriously don't know.
Original Post
A few days ago I thought I had posted "the graph of the year." Now another one. If you include the Tesla graphic yesterday, we now have three graphs that could get bragging rights as "graph of the year."
This is rather phenomenal to say the least. Don sent me the link -- I might have gotten to it eventually, but possibly not.
I'm pretty much avoiding business news today -- Dow futures were down 200 points and on days like this, I simply try to ignore the news. Lots of YouTube.
But I digress. Look at this graph. Amazing. Dynamic link here.
Working gas in storage has broken through the five-year minimum .... who wudda thought? Hottest days of summer yet to come. Then a cold winter. It could be hard to catch up by December.
How low will it go? For now, break through:
that graph does not include all natural gas that we just promised to send to Europe this winter to replace the gas that would have come from the Nord Stream pipeline from Russia to Germany, which i believe Congress has just passed sanctions against...
ReplyDelete& before we can 'just crack a few valves open a little more" we'd have to build the pipelines or drill the wells...natural gas in the Permian has no way of getting out, while DUCs in the Marcellus, Utica, and Haynesville have been falling for months, as more wells have been fracked than were being drilled monthly for roughly the past two years...
As noted, some of this will be sorted out this winter if it's particularly cold.
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